Complete the table to compare the effects of dropping the ski line of products. Enter all amounts as positive numbers except for a net loss. If an amount is zero, enter “0”. The cost data for the each department is shown below.
| Snowboards | Skateboards | Skis | ||
| Sales | $175,000 | $180,000 | $160,000 | |
| Less: variable expenses | 70,000 | 36,000 | 56,000 | |
| Contribution margin | $105,000 | $144,000 | $104,000 | |
| Less: fixed expenses: | ||||
| Salaries | $61,250 | $63,000 | $64,000 | |
| Depreciation | 14,000 | 27,000 | 32,000 | |
| Advertising | 4,000 | 9,000 | 48,000 | |
| Net income (loss) | $25,750 | $45,000 | $ 40,000 | |
| Alternatives | Differential Effect | |||||
| Keep | Drop | Increase/Decrease | ||||
| Sales | $ | $ | ||||
| Less: variable expenses | ||||||
| Contribution margin | $ | $ | ||||
| Less: fixed expenses: | ||||||
| Salaries | $ | $ | $ | |||
| Depreciation | ||||||
| Advertising | ||||||
| Net income (loss) | $ | $ | $ | |||
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